In further evidence of the intense pressure facing small practices, the Solicitors Regulation Authority (SRA) today (31 October) announced that 153 law firms are at threat of closure after having failed to secure professional indemnity insurance (PII) cover.
Under the new PII arrangements – introduced this year to replace the old assigned risks pool – these solicitor firms will now enter a 60-day ‘cessation period’ in which firms can only deal with existing instructions while they seek an insurer. Those failing to gain cover by 29 December will be required to close.
